New system of indicators from FIBO Group Analytical Department

Published 07:31 14.08.2009

Analytic research department of the FIBO Group has developed a system of indicators SI-HM (System of Indicators – Helen MUSH), which allows for high-quality decision making while operating in various markets. The system is currently getting adapted for the FOREX market, but it doesn’t actually mean that there cannot be found a use for it in other segments of the exchange market. The system has fundamental rather than explicitly technical basis, mostly due to the fact that in order to make logical conclusions a fundamental analysis is used.

Generation of indicators in the system is based upon the information on actions of players in derivatives (futures and options) market. The indicators make it possible to pass judgments on short-, mid- and long-term market prospects. One of many outstanding know-hows of the system is that it combines both significant information on behavior of major market players and takes into account the extent of monetary flow. And this is exactly what traditional technical and fundamental analyses lack. SI-HM is a system that is able to provide with “spick and span” logical conclusions in relation to behavior of diverse financial instruments as well as justify the way things are happening.
These are the new indicators of short- and mid-term market movements that are used in the SI-HM system: IDA (Indicator of the Daily Activity); IFC (Daily charts for corrections forecasting); IUC (Weekly ambiguity diagram).
The IDA is specifically designed to determine whether there is or there is no trading signal for this or that instrument, including the direction of that trading. As for the FOREX market, the indicator is generated for EUR/USD, GBP/USD, AUD/USD, USD/CAD, USD/CHF, USD/JPY. The IDA consists of two diagrams: IDA1 and IDA2. The IDA1 is used in relation to a short-term period (for the next following day); the IDA2 is used in relation to a mid-term period (for the next weeks). The best results are achieved when activity directions of both periods match up.

The IDA allows to foresee the turning points in the market life and reflects them as bursts of activity for mid-term periods and as crossovers from “sell to buy” and from “buy to sell” for short-term periods. The IFC supplements the IDA and is used to recognize trading signals during short- and mid-term trading sessions as well as the direction of the futures prices. Basically the IFC is based upon the analysis of matched and unmatched directions. The movement of the currency pairs is indicated in form of direct quotations and conventional units for each instrument (e.g., EUR, GBP, CHF, CAD, AUD, and USD).

The construction of both IDA and IFC is based on results of the American session.

Specific distribution diagrams for American-style currency options at striking prices for EUR/USD, GBP/USD, AUD/USD, USD/CAD, USD/CHF, USD/JPY and DJI (more instruments will be added to the list as soon as the system gets adapted to other segments of the exchange market) are the additional features of the system.
Another very important feature of the system is that the diagrams based on COT reports, which reflect the number of positions opened in the derivatives market for EUR/USD, GBP/USD, AUD/USD, USD/CAD, USD/CHF, USD/JPY, U. S. Index, 3-MONTH EURODOLLARS, S&P500, DJI, NIKKEI, 2-YEAR U.S. TREASURY NOTES, 5-YEAR U.S. TREASURY NOTES, 10-YEAR U.S. TREASURY NOTES, U.S. TREASURY BONDS, BRENT, GOLD.

The IUC-indicator helps to foresee the market turning points. The IUC-diagram can be constructed for any instrument included in COT reports.

Best regards,

FIBO Group Administration